CE assists in landmark antitrust case: AMD v. Intel

(AMD) and agreed to a settlement that ended litigation over Intel’s alleged anticompetitive practices in the microprocessor industry. The settlement includes restrictions on certain Intel business practices and a $1.25 billion payment to AMD. The settlement amount is one of the largest in the history of Section 2 litigation.

CE Director Michael A. Williams was retained by O’Melveny & Myers LLP, counsel for AMD, to conduct an analysis of Intel’s economic profits. By distinguishing Intel’s economic profits from its accounting profits, Dr. Williams was able to demonstrate that Intel earned an average annual economic rate of return on its capital investments of 16.1%. That is, Intel earned an average annual return of 16.1% above its competitive rate of return. Since 1996, when AMD introduced its first proprietary microprocessor, Intel has earned economic profits of $88 billion.

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